Phuket Price Rental Index 2023

After two years of COVID, Phuket rental property market awakened in 2023 with newfound energy and momentum. The data confirms this, with rental leads for Phuket up 50% along with a 10% increase in rental prices. The numbers show landlords can tap into high demand markets from the UK, Russia and Middle East. On the other hand, renters have their pick of new luxury condo and villa developments. 

Table of Content Phuket Rental Market 2023 Overview Trend Analysis of Phuket Rental Market 2023 A Comparative Analysis of Phuket Rental Market 2023 Factors Increasing Phuket Rental Market Trends Retirement Home Targeted Developments Top Locations To Rent Your Property in Phuket Patong Kamala For Landlords and Renters What Should I Do? For Landlords For Renters Time is Now For Profitable Rentals

Phuket Rental Market 2023 Overview

In Phuket, there is a shift in rental demand and supply across Kathu, Thalang, and Phuket Town. Thalang is the most expensive region for both condos and villas, followed closely by Phuket Town and Kathu. Surprisingly, Kathu experienced a significant 29.57% increase in average house rental prices from June to August. Thalang witnessed a sharp decline of approximately 85.19% during the same period. Such fluctuations underscore the ever-evolving nature of the Phuket rental market, demanding both landlords and renters to stay informed of price changes.

A deep dive into the supply framework paints a picture of private owners as the predominant players for supplies. Phuket Town (747 listings) and Thalang (721 listings), leaving Kathu slightly behind with 376 listings. 

Transitioning to the demand perspective, the rental market presents interesting patterns. The median rental price is at 39,500 THB, while a significantly higher average of 67,690 THB  indicates the presence of upscale properties elevating the average. The price diversity is further enhanced by the median list price of 37,000 THB, painting a picture of a market bustling with varied offerings catering to different nationalities.

The rental lead data from Q2 and Q3 2023 shows some interesting trends for Phuket. The total number of rental leads jumped over 50% from Q2 to Q3, indicating rising demand as we head into the high season. Europe continues to drive most leads, with the UK, Russia, and Scandinavia making up almost 40% of all leads. However, we also see growth from the Middle East, SE Asia and from America. Average rental rates ticked up 10% from Q2 to Q3 as demand increased faster than new supply. Villa and condo leads are nearly equal, but condos saw larger growth in Q3 of 2023. 

From a development perspective, the top players remain Thai developers like Pruksa, Sansiri, and Supalai. But small boutique firms like Boat Pattana and Chom Tawan also made the top list amidst rising demand. Overall, the data paints an optimistic picture for Phuket landlords and agents. Leads and rates are trending up across segments, signaling strong high season potential. With international travel recovering, marketing to the UK, Russia, the Middle East, and Americas should capture the most growth. New boutique inventory also caters well to post-covid demand. For owners and agents, being ready to capitalize on Q4 peak season will be key.

Trend Analysis of Phuket Rental Market 2023 

A major pattern in Phuket rental market for 2023 is that  median rental price stands at 39,500 THB and an average shooting up to 67,690 THB.The massive price difference of 48% between median and average highlights the presence of high-end properties upward trends. The median list price of 37,000 THB further underscores this observation, hinting at a dynamic market where demand meets a diverse range of offerings.

Diving into property types, condos saw a 12% quarterly growth in average rental rate, rising from 60,000 THB in Q2 to 67,000 THB in Q3. Villas experienced more volatility, with rates dropping from 75,000 THB to 65,000 THB. In terms of lead volume, Q3 saw a 54% increase for condos and 68% for villas, indicating rising demand.

Looking at top demographics seeking to rent either condos or villas in Phuket we will start with China. China's demand for condos is evident with 200,000 THB average transactions. The U.S. takes a balanced approach with 80,000 THB condos and 60,000 THB townhouses for rent in Phuket. Germany shows high demand and interest for luxury rental properties with 240,000 THB average price rentals for villa projects.

Benchmarking rental rates, Phuket Q3 condo rates were 11% above Bangkok but 12% below Koh Samui. While villa rates topped both Bangkok and Koh Samui by over 20%. You can scan our FazWaz Koh Samui price rental report of 2023. 

A Comparative Analysis of Phuket Rental Market 2023 

Phuket 2023 rental market is gaining momentum in quarter 4 of 2023. With Q3 rental leads jumping 50% and average rates increasing 10% compared to 2022. Condos leads rise from 5,000 to 7,500 while villas interest increase from 3,000 to 5,000 leads. 

Average rental rates also increase - condos at 70,295 THB up from 62,000 THB in 2022 and villas at a staggering 1,400,000M THB driven by ultra-luxury demand.

Diving into property types, condos accounted for 337 units rented versus 361 villas. However, villas dominated higher value rentals above 1,000,000 THB, stemming from luxury developments by Sansiri projects in Bang Tao and Layan. Condos catered to mid-market demand from locations like Patong, driven by developments from Land and House. 

Geographically, Patong has the highest interest compared to other districts with over 30% of rented properties. Patong sub district is surrounded  by its bustling beachside amusement and proximity to entertainment venues. Northern areas like Kamala and Surin attracted high-end villa demand while southern locales like Karon and Kata aligned more with condo demand.

Factors Increasing Phuket Rental Market Trends 

Based on the comprehensive Phuket rental market data for Q2 and Q3 2023, I would highlight two main factors contributing to the changes in rental demand, leads, and supply prices: retirement and targeted development. 

1. Retirement Homes

Retirement homes are also playing a role. Northern countries like the UK, Germany and Russia are seeing retirees spend winters or settle long-term in Phuket, villa and condo rentals. Approved retirement visas jumped 67% in 2023. This demographic values Phuket's tropical weather, amenities and healthcare.

2. Targeted development

Major developers like Sansiri and boutique players like Boat Pattana are expanding inventory in high-demand locations like Patong and Kamala. New branded condo projects cater to mid-market travelers from Europe, Australia, and Asia. Luxury villa projects target high-end demand from places like the Middle East. This strategic development to match renter preferences and budgets is absorbing surging demand. 

Top Locations To Rent Your Property in Phuket

The two most prime rental districts in Phuket are: Patong and Kamala. You will find out below on how and why you should rent a condo or a villa in these two districts of Phuket. 

Patong

Patong stands out as the top rental hotspot in Phuket, accounting for 160 of 2,453 total rentals in Q2 and Q3 2023. Condominiums made up the vast majority at 147 rentals, with the average price point sitting at an affordable 33,000 THB. Major condo projects like Patong Loft and Dlux Condominium saw strong demand, catering to mid-market travelers. With its vibrant nightlife and dining, Patong attracts a diverse renter demographic from singles and groups to families. Want a full location guide on Patong. Check out our location guide of Patong, Phuket. 

Kamala

Meanwhile, Kamala offers 187 rentals. Condos again led at 122 units, but average prices reached 51,203 THB, above Patong's range. Additionally, Kamala saw 65 villa rentals at 136,746 THB on average, providing luxury options. Developments like The Residence and Layana Resort position Kamala as an upscale enclave, yet within proximity to Patong and Surin. For renters seeking resort-style amenities coupled with dining and amenities, Kamala brings together convenience and tranquility. The data shows it appeals to high-end couples and families.

For Landlords and Renters: What Should I Do? 

For Landlords

For landlords, it's also an ideal time to cash in on Phuket's revival. Average rental rates have ticked up 10% thanks to ravenous demand from across the globe. From honeymooners splurging on cliffside villas to digital nomads seeking funky beach condos, you can capitalize on new market demand that is opening looking to soak up those island vibes. With new direct flights making Phuket more accessible, savvy landlords who get their inventory online will reap the rewards.

For Renters

Phuket emerges from the pandemic ready for a work-life balance living in the sun once more in 2023 and 2024. For renters, it's time to look for your ideal properties to rent and location. Rental demand is surging, with leads jumping 50% from April to September. That means great beachfront condos and luxury villas are booking up fast. Whether you want to retreat to a tropical oasis with your own private pool or live like a local in Patong, now is the moment to find your Phuket dream rental. 

Time is Now For Profitable Rentals 

The window of opportunity is open but competition is closing in. For landlords, market vacant inventory is time to seize mass demand in quarter 4 2023.  For renters, secure your ideal beachside getaway before peak season hits during quarter 4 of 2023. The time is now to stake your claim in Phuket 2023 rental gold rush. Don't watch from the sidelines - take action so you can live, profit, and thrive in Thailand most coveted island. ​

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